hourly employees today that it has offered them a labor contract with
"very substantial economic improvements" in an effort to reach
an agreement before strike deadline set by union negotiators.

In a letter distributed this afternoon to members of two United Steelworkers of America locals, WCI President James V. Stack said the company has offered meaningful wage increases, an enhanced profit- sharing package, two additional holidays, premium time for Sunday work, pension plan improvements and significant improvements in insurance coverage.
"We believe this contract will enhance the job security we all enjoy today because of the commitment we've made to being second to none in the steel business," Stack wrote.
Along with a letter, employees were given a sheet that highlights WCI's offer to the two local unions.
Negotiators for the USWA's Pittsburgh office have told WCI representatives that they will call a strike against the company if a tentative agreement is not in place by Monday night, the letter says.
WCI and USWA representatives were scheduled to meet today in Pittsburgh.
WCI Steel, Inc. produces quality engineered flat rolled steels and contractor products for the automotive, appliance, electrical machinery, metalworking, steel service center and construction industries.
Following is the letter and highlight sheet distributed to USWA members: Dear Fellow Employee:
I was hoping that by this time we would be celebrating the adoption of a new labor contract at WCI Steel. But unfortunately, with our current contract about to expire Monday, we have no agreement in place as of this writing. The union has told WCI's negotiating committee that there will be a strike if no contract agreement is reached before the expiration of the current agreement Monday night.
With the full support of myself and Ira Rennert, WCI's negotiators have proposed a new contract that includes very substantial economic improvements for you. Enclosed are highlights of the WCI proposal.
We believe this contract will enhance the job security we all enjoy today because of the commitment we've made to being second to none in the steel business. Over the past four years, Mr. Rennert's support and your hard work have resulted in the installation of a state-of-the-art continuous caster, the reopening of the idled Youngstown sinter plant, the relining of our Warren blast furnace and a range of other capital improvements. With our employee training and labor management participation team programs, we have what I believe is the best work force in the world.
Now, we need to keep our progress going. To do that, WCI has proposed a new contract that includes meaningful wage increases, an enhanced profit-sharing package, two additional holidays, premium time for Sunday work, pension plan improvements and significant improvements in insurance coverage. Mr. Rennert has emphasized his commitment to these improvements in your compensation package. And until recently, we were hopeful that a new contract would be ratified soon. It is only in the past several days that the progress of the talks has stalled.
We'll continue to keep you informed as the situation changes. Sincerely /s/ James V. Stack President
HIGHLIGHTS OF COMPANY PROPOSAL
Wages: $2.00 increase over the contract life
Sunday Premium: 1-1/2
Holidays: Add Good Friday and Martin Luther King Birthday
Pensions: Increase average of 14 percent
401(k): Increase elective contributions - 1-15 percent;
Add 1 additional investment option
Vacation: Day at a time vacation - 1 week
Profit Sharing: Quarterly payments based on quarterly profits
SUB: $100 waiting week;
Increase weekly sub benefit to $195 max
Safety Shoes: $70 allowance
Benefits: -- Active life insurance increased to $17,000 for
all employees
-- Increase S&A $20 per week over contract life
-- Improved active and retiree health care plan
Managed care plan added which includes:
- Mail order drugs
- Added coverage, such as, preventative care
and well baby care
- Office visits for just $10 co-pay
- Routine physical
- No claim form to fill out
- Many other employee cost savings
-- Fee for service added to dental plan for active
employees, enabling employees and dependents
to go to the dentist of their choice
-- Retiree health care contribution reduced to
$40/month each for non medicare employee and
spouse
$17/month each for medicare eligible employee
and spouse
Contract Expiration: May 1, 1996
-0- 8/28/92
/CONTACT: Jack Walter of WCI Steel, 216-841-8218/ CO: WCI Steel ST: Ohio IN: MNG SU:

BM -- CL020 -- 4575 08/28/92 16:40 EDT

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